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Closing Bell

News/Business. Maria Bartiromo, Bill Griffeth. A guide through the most important hour of the Wall Street trading day. New. (CC) (Stereo)

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01:00:00

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Us 13, Larry Fink 9, America 6, S&p 5, Draghi 5, Obama 3, Facebook 3, Humana 3, Alcoa 3, Europe 3, U.s. 3, Texas 3, Look 2, Charles Schwab 2, Romney 2, Brian Murdoch 2, Adp 2, Quinton 2, Matt 2, Hertz 2,
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  CNBC    Closing Bell    News/Business. Maria Bartiromo, Bill Griffeth. A guide  
   through the most important hour of the Wall Street trading day....  

    October 4, 2012
    3:00 - 4:00pm EDT  

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"street signs." we appreciate you watching it today. >> we do, indeed. "closing bell" is next. hi, everybody. welcome to the "closing bell." we enter the final stretch of trading for a thursday. here we are coming to you live from the trading floor of black rock, the largest asset manager on the planet. we will be tag to larry fink, the ceo of black rock in a second. we're also zeroing in on the close. coming to you today getting the reaction of the debate, ecb move, and more on wall street today with money moving back into stocks. my partner bill griffeth at the new york stock exchange looking at this double-digit rally, bill. nobody better to speak to that the largest asset manager on the planet today with ton the heelse big debate. >> yeah, i'll be looking forward
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to what larry has to say. thank you. i'm belill griffeth here at the big board. some say mitt romney may have reset his presidency bid with the debate tonight. stocks are higher. he's generally viewed friendlier to business in wall street. we're also seeing specific groups move in sync with romney's position. coal stocks, for example, getting a lift after he addressed support for them last night. hospital stocks are down on concerns heck make big changes to elements of obamacare that could help hospitals. we should point out energy is very strong today. that, of course, has been one of the leaders for stocks this year. they are powering the market higher as well today with the dow just off the highs, up 86 points. the nasdaq's up 12 points right now at 3148. the s&p is up 10-plus points right now at 1461. maria. >> all right, bill. the minutes from the federal reserve september policy meeting
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today out shedding little new light on the fed's future plans, but of course tomorrow's september jobs report will off more clues about the health of the economy. we're going to get some thoughts about what to expect out of the jobs numbers and from this rally. >> everybody is on board. steve, how about some of the hits, runs, and errors from those feds minutes? it didn't move the markets to any great degree today. >> i think we knew where people stood. the voting members are more or less in favor of the policy that came out, which was the one, the open-ended quantitative easing. the non-voters, there are more objections there. that's where more of the hawks are in the current rotation of the fomc. i don't think we learned anything new about there being a bigger or wider split when it comes to the new policy out there. they do have work to do, guys.
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they're working on the calendar date guidance. they're working on a whole bunch of other stuff that's out there. for example, the fomc individual interest rate forecast, and i think the way maria led into this, that we need new information, that's absolutely true because we don't know what happens in january. it's unclear how to calibrate the incoming economic data with what the fed is going to do in january. >> yeah, so we still have a fair amount of uncertainties on the table. yet, a little more clarity in what's going on in the campaign ahead of the election. michael, tell me about your allocation of capital in the face of the unknowns in terms of the economic data and the election. >> look, those that have been following my analysis know i was one of the first to call for the reflation trade back in january. we passed through the summer surprise. by the end of the fall, we're going to hit new all-time highs. i have to caution everybody here. the idea this is a romney rally is a bit of a misnomer. if it were based on u.s. domestic economic policy
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expectations, small cap stocks, which are dependent upon domestic revenue growth, are not showing that. they're not outperforming larger cap stocks. that's number one. number two, when you look at utilities and health care consumer staples, there's been tremendous bidding up of defensiveness in the face of this resilient move. we've actually positioned, in terms of mutual fund and separate accounts, back into bonds until this hesitation and corrective period ends. >> ron, you call this a romney rally today, don't you? >> i think there's going to be no way to get around it. that's the headline of the day. if you look at the in trade probabilities of who's likely to be elected, president obama last week or so peaked at a 76% probability. this morning, it was down to 66% probability. romney moved up 10 percentage points. dan loeb on facebook had put last week out a note that you ought to buy the romney futures because they were so depressed. i don't know how the money works
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in that thing, but he made ten points on the upside. >> wonder what the capital gains treatment is on that. >> that's a good question. >> rick santelli, i haven't even talked about march you draghi. he had an impact on the markets early on today, didn't he? >> he definitely did. if i look at interest rate complex between the mario draghi influences, the euro rally. we saw interest rates on the safe harbors like ten-year notes move higher. the stocks really grasping in and getting close to triple digits has put the ten-year pretty much at the top of what has been an eight-trading day, 5 1/2 basis point closing range. the boon, which closed a bit ago, is in a 2 1/2 point basis range for seven trading days. it's somewhat amazing. the issue with draghi remains. he moves foreign exchange a lot. they think he has that bazooka.
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we're not sure if he has the fuse and match to light it. >> steve liesman, let's talk about tomorrow's numbers. we got the adp report out this week. did it give you an indication of what we might hear tomorrow and what are the expectations, how priced this are they in this market here in terms of the jobs numbers? >> well, maria, adp is one of the things that's used by economists to figure out what the number tomorrow might say. some guys say it's the best one. other guys say it's a terrible one. a lot of mixed opinions on it. i like to look at everything. i'm not seeing anything that tells me i should be shaking off the idea that we're somewhere in that 100 to 150,000 range. when you look at the number of jobless claims, it's about the same. a little bit of a tick up in the conference boards, the assessment of consumers out there about how easy it is to get a job. nothing off the charts. also, look at the general level of economic activity, which seems to be in the 1.5 to 2% range. >> all right.
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thanks, everybody. >> thanks, guys. >> we'll keep watching this market, which continues to rally. we're coming to you today from black rock. it comes down to the firm's stronghold on assets and volume. the company is the largest asset manager. $3.6 trillion. it's more than the federal reserve, more than the gdp of some countries. throughout the next two hours, we're going to broadcast exclusive interviews with the top decision makers here, find out what clients are doing in terms of allocating capital. larry fink has been trying to encourage a move out of fixed income and back into equities for some time saying you're actually losing money in fixed income. we'll find out what he's expecting. we have the commander in chief, larry fink. as well after this break, we'll talk with the president of black rock, rob kapito. that's all coming up on the "closing bell." >> yep, looking forward to that. 53 minutes left in the trading session. the big feature, energy, with oil and gasoline. gasoline is the big winner today with a gain of 5% right now.
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>> don't go anywhere wi. we have a lot ahead on this special edition of the "closing bell" today. coming up, economic patriotism. >> are we going to double down on the top down economic policies that help to get us into this mess, or do we embrace a new economic patriotism? >> is it fair to use the flag to get the rich to pay more than their fair share of taxes? plus, face time for facebook. >> chairs are for people. that is why chairs are like facebook. >> why is the billion-member social media giant suddenly running ads? we'll update their status ahead on the "closing bell." ♪ [ piano ]
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pretty decent rally on wall street so far today. bob is in the middle of it all here at the new york stock exchange. >> hello, william. they're talking the bulls are out. they're talking about this being the best of all possible worlds for the next month or so going
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into the election. take a look at the full screen. romney doing well last night. got a lot of bulls very happy. some of them are saying it means clear sailing into election day. what about all the uncertainty in spain? draghi has been aggressive. did you see today at press conference he said he's ready to help spain today. the bears are also active. they're arguing the q-3 earnings are going to be down. they say president obama's victory, if that happens, will weigh on the markets. regardless, look at s&p 500. 1465 is what we need for a new four-year high. we're right on top of that. bulls are also pointing to the transports, again outperforming the industrials today. that's the third straight day of outperform after three months of underperformance. back it you. >> all right. thanks, bob. maria. >> well, we are back with our special coverage today from the black rock trading floor in new york city. we've laid out the numbers. the firm manages more money than the federal reserve, more than $3.5 trillion. the question is, how are they putting their money to work in today's environment?
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and how are clients allocating capital today? joining me now in a cnbc exclusive are two people at the forefront of those decisions. quinton price and robert kapito, the president of black rock. gentlemen, good to have you on the program. thank you so much for joining us. let me start with quinton, since i don't think you've been with us before. nice to have you on the program. you are the global head of the alpha strategies group. really, a global opportunity for allocating capital. to what do you attribute the rally today? was it the ecb, do you think? was it the election last night? what's going on? the debate, rather. >> europe has been driving the market for months. ever since draghi made his comments, going back two months, we've seen confidence flowing back into equities. we've removed the downside risk for markets. i think that's continued. i think people have got confidence back from last week and we're seeing a number of, you know, good reports of pick up in china and stuff which is
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all helping to create a positive tone. >> so you do believe the tail risk is not as bad as it was, or you think we've seen solutions for europe? because it's hard to believe that we're seeing, you know, an overnight success there and sort of a real fundamental change. >> there's no doubt. we're not out of the woods in europe. what is very clear from what draghi said over the last couple of months is, you know, merkel is behind him. rooer t we're trying to make sure there's no huge meltdown, and there's a huge amount of political impetus to make sure we avoid any catastrophe. it's clear to us the market has further to run, and we're seeing assets come back into european equities. >> rob, this firm, yourself, larry, have been really on a campaign to try to explain to clients that you're not doing yourself any favors by having all this money sitting in cash as opposed to putting money into equities, correct? >> that's correct. >> have you seen the movement?
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are you seeing risk aversety on the part of investors? are you seeing loosening up there? >> finally we're starting to see some loosening up. there's around $10 trillion sitting in bank accounts that's earning nothing. we are going out with practical advice that it's time to be an investor again. people have to look for alternativ alternatives. at block rock, it may seem like a lot of assets, but everything we do is on behalf of our clients. in fact, two-thirds of all of these assets have something to do with retirement. when did living longer become a bad thing? so people are all looking for income, so we've been going out and trying to give people real ideas of what they can do to move some of that money out of cash and go into income-producing securities. >> dividend companies, dividend etfs is an area you've talked about in terms of yield. what are the strategies you would recommend in that area? >> they're not much different
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than we were pounding before. so equity dividends. we'd love a large cap quality companies that continue to pay their dividends. their beneficiary of lower rates. they've been buying back their stock and raising dividends. in fact, i think i gave you a statistic last time. there's over $340 billion worth of buy backs that are going to occur. this is really important. i think it's really helping the stock market to have some balance. in fact, the last time we talked, the stock market wasn't up as high as it is today. here are investors sitting in cash, and i said by the end of the year they're going to look back and be sorry about that. where is the s&p today? up about 15% on the year. bonds are up 5%. you can't sit in cash. the future is not waiting for you. this is the time to move some of that cash, equity dividend stock, high-yield bonds that are creating income. i-share is a great liquid way to get into high yield and many other areas for the core portion
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of your portfolio. the last thing, you know i love munis. as we watched last night, we're all going to be paying more taxes. if you're a taxpayer, then munis is the place to be. those four ideas are the one that i would suggest. >> quinton, let me get your take on the fundamentals. we have rob talking about looking for yield in an environment we're at rock-bottom rates. yet, the fundamentals of this time is worse. is this all about moving money into stocks because you have so much free money around? is this really central bank led, whether it's the ecb, the fed? the fundamentals, do you really want to buy into this on fundamentals? >> stocks are not expensive, maria. the markets that we're looking at now are trading -- and the high-yield dividend stocks are trading at a discount to the non-dividend paying stocks.
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what we want is to stop people thinking about what's going to happen over the next 12 months and start them thinking about what's going to happen over the next 20 years. people are living so much longer. they've got to take a longer term horizon so they actually have enough money to live on. as rob said, make retirement a pleasure rather than, you know, a hindrance to their old age. >> rob, let me ask you a quick question on blackrock. i'm going to talk to larry fink about this in the next hour. are we seeing a bit of a price war for exchange traded funds these days? you have vanguard really undercutting everybody. what does this mean for you in terms of pricing? you paid a lot of money for the barclays bgi business, and here we are looking at questions about the etf business. what are you seeing? >> i think there's a lot of hype. it's something interesting to talk about, but the reality is
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price is just one aspect of an etf. our etfs, of course, are called i-shares. there's liquidity, which is one of the primary reasons a lot of people use i-shares and etfs. there's tracking error. these things are supposed to track a benchmark. there's some that do it well and some that don't do it well. there are many, many parts of the value chain other than price. also it depends if you're an institutional investor, retail investor, buy and hold investor, or what a lot of people are using i-shares for is to take exposure into the market, the risk-on trade, and take risk off. for that, you have to have liquidi liquidity. you have to have the backing. you have to have the right brand. it's not just about price. this is just something that people are over blowing in the etf market. >> i agree that's where the transparency is, the tax efficiency, and the reason we've seen retail investors and institutions pile in the etf business. gentlemen, good to see you.
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thank you so much. >> thank you. >> we appreciate your time. later, i will talk exclusively to the head of blackrock, larry fink, ceo. how would falling off the fiscal cliff impact the world's largest asset manager? we'll talk about that and more with larry fink. meanwhile, we want to go to seema mody for a market flash. >> that's right. take a look at navistar making an announcement today in an effort to lower cost. it's cutting its white-collar work force. it's also cutting its engineering spending by 28%. it may also close some factories. shares are up about 1.5%. bill, over to you. >> seema, thank you very much. heading toward the close. the market really has plateaued here. we had a good gain of about 98 points early on. it's been going sideways since then. up about 88 right now. >> facebook reaching 1 billion users, debuting the first commercial ever. >> chairs are for people. that is why chairs are like
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facebook. >> really? chairs? we'll show you more of that commercial coming up. >> i have a flashback to a philosophy professor who did an entire lecture on what is a chair back in college. so i'll be interested to see what they have in mind there. plus, target is following walmart's lead now. they're going to end monthly sales reports, but are you better off shopping for shares of target or walmart? we have that trade coming up next. stay tuned. [ male announcer ] the 2013 smart comes with 8 airbags, a crash management system and the world's only tridion safety cell which can withstand over three and a half tons. small in size. big on safety. monarch of marketing analysis. with the ability to improve roi through seo all by cob. and you...rent from national. because only national lets you choose any car in the aisle... and go. you can even take a full-size or above, and still pay the mid-size price.
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welcome back. oil and gasoline futures spiking after a refinery fire in texas. sharon is here with all the details. over to you, sharon. >> a lot of factors in the oil market's rise today. definitely the gasoline futures a big part of it. we are hearing from exon there may be disruptions to production from this refinery fire that broke out last night in the bay town, texas, refinery. it's the largest operating refinery in the u.s. it broke out in a distillate unit. there's so much concern about tight gasoline supply, that's really helping to drive the price higher. we're seeing the highest prices in california. back to you, bill. >> lovely. sharon, thank you very much. so let's move on to target. today announcing it will no longer report monthly sales figures starting next year. that is a move that aligns it with competitors like walmart. we should point out both target and walmart are up about 25% so
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far this year. big moves there. which of the big box retailers is the better buy right now? that's what we're going to talk about in talking numbers today. on the technical side, it's mark newton. on the fundamentals, patty edwards. good to see you both. mark, give us the charts. who looks better right now among two strong retailers? >> i like walmart a lot better than target. it has a superior longer term chart. i think it should still outperform. we see a monthly chart of walmart going back since the d mid-'90s. it went sideways for almost a decade. recently the stock broke out to new high territory, really in june of this year. that caused real acceleration. oftentimes it's important to watch when a stock hits new annual highs or all-time highs. that can lead to further acceleration in price. >> target? >> meanwhile, target is also technically bullish, but it's just approaching the highs now.
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when you try to compare the two, the stock likely is going to stall near this 68 to $70 level. walmart has already moved to high territory level. both stocks are bought. both stocks might have 4 to 5% upside. i would look at walmart. >> with the stock that's already proven itself. patty, who do you like? >> you know, valuation isn't compelling for either one of them. that being said, canada is opening up for target. i think that cheap chic is going to go over incredibly well there. if you're going buy something and put it in your back pocket for the next five years, you go to target. >> all right. thank you, both. speaking of retailers, amazon is reportedly moving into the commercial lending business, but one of our guests coming up says that's proof that amazon's retail business model just doesn't work. we'll get to that story coming up a little bit later here on "closing bell." maria.
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>> all right, bill. thanks so much. we're in the final stretch here. 30 minutes until the closing bell sounds for the day. we have a market holding on to gains. s&p up about ten. we're on today's big rally and talking to the largest asset manager today. president obama, meanwhile, coining a new term during last night's debate. >> are we going to double down on the top-down economic policies that help to get us into this miess, or did we embrace a new economic patriotism that says america does best when the middle class does best? >> so what exactly is economic patriotism? somebody here says if you make six figures, hide your wallet. later on, his firm managers more money than the federal reserve. could blackrock ceo larry fink become the next treasury secretary if president obama wins re-election? find out exclusively when i talk with him on "closing bell." stay with us. tdd#: 1-800-345-2550 when i'm trading, i'm totally focused. tdd#: 1-800-345-2550
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welcome back. u.s. stocks have been in rally mode today. we've had some guests who feel it has a lot to do with mitt romney's strong debate showing last night. eamon javers is in washington with the latest reaction to last night's action. eamon.
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>> hi, bill. the reviews are in for last night's presidential debate. not so good for barack obama. definitely good for mitt romney. a lot of folks concluding that romney had one of the stronger debate performances last night in presidential debating history, at least in recent memory. that's not good news for the president. you can tell how both these campaigns feel about their performance last night based on what they're doing today. we have not seen mitt romney out in front of television cameras so far today, but president obama hosted a rally in colorado today, giving him a chance to have almost a do over from last night's performance. take a listen. >> when i got on to the stage, i met this very spirited fellow who claimed to be mitt romney. but it couldn't have been mitt romney because the real mitt romney has been running around the country for the last year promising $5 trillion in tax cuts that favor the wealthy. the fellow on stage last night
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said he didn't know anything about that. >> and bill, the battle continues now. in the battleground states, we're going to see both candidates in virginia. the president is also going to be in ohio. last night's debate is not the end of things by a long shot. >> yep, eamon, thank you. we had a new phrase enter the lexicon, didn't we? >> the president introduced a new term in his fight to raise taxes. listen to this. >> are we going to double down on the top down economic policies that helped to get us into this mess, or do we embrace a new economic patriotism that says america does best when the middle class does best? >> now, if that sounds familiar, it's because just last week the president of france made a similar plea after proposing a 75% tax on the wealthy in his nation. he said, there will be no exceptions. everyone has to make an effort,
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play their part. we all have to be patriots, he said, especially those earning over 1 million yeuros a year. sounds familiar? >> it does sound familiar. michael lyndon, director for tax and budget policy at the center for american progress, maintains that taxing the wealthy is indeed patriotic and says most americans agree. mike, let me kick it off with you. you say taxing the wealthy, are you talking about people making more than $200,000 a year? >> sure. people making more than $250,000 a year. people making more than $1 million a year. those are the richest 2%. >> just to be clear, the president says an i think making more than $200,000. >> sure, sure. >> and a couple making $250,000. just to be clear. so $200,000. >> that's right. those are americans who are the
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richest 2%. they make more than, obviously, 98% of americans. if that's not rich, i don't know what is. look, the president's proposed very modest tax increases for people in that range and substantially higher tax increases for people making more than $1 million or $2 million or $10 million. it seems very, very reasonable to ask those folks who have benefitted dramatically from the tax cuts over the last ten years to pitch in so we can pay for things like we birebuilding ours and bridges and making our schools the best. that seems like a fair trade. >> diana, i know there are some that will say this is a euphemism for wealth redistribution. what about michael's point that there needs to be redistribution to pay for some of these things? >> if we're talking about economic patriotism, what we need to have is economic growth so we have more tax revenue in order to pay for things that
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everybody, not just the middle class, need. what president obama was talking about was, yes, redistribution. people who have more money, pay more. they give it to the middle class so they can have more food stamps. we have a record number of people on food stamps. of course, someone has to pay for it. all those people on food stamps want real jobs. what we want to do is increase economic growth. that's why lowering taxes is the thing to do. it attracts more business back to the united states. >> ddiana, how did that work ou during the bush administration? we lowered taxes, we got the same argument you're giving now. by the way, we'll have plenty left over to reduce the debt. that didn't work out so well. that theory, lower taxes for the rich, that theory does not hold water after the last 20 years. it's kind of impressive that you keep spouting it though. >> actually, there are reports and studies out there that show when you lower taxes, there are studies out there and even a
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former head of the economic committee in the obama administration, her and her husband came out with reports and studies years ago. when you lower taxes, it encourages businesses to put more money into the economy and hire and individuals to put more money into the economy and spend. [ overlapping speaking ] >> all else being equal, lower taxes are definitely better than higher taxes. i don't dispute that. nobody disputes that. all else isn't equal. if you finance those tax cuts for the rich with huge amounts of debt as george w. bush did and as mitt romney is proposing, you're going to end up with slower growth. that's what we've got over the last ten years. there's no reason to believe any different. >> with we certainly have that over the last three years. >> exactly. >> let me ask you this, diana. >> pause, pause, pause. timeout. when the president took office, the economy was contracting by 9% annual.
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it's now growing. don't tell me the economy is growing slower than when the president took office. that's not true. >> in the last year and the year before. the last three years is what i'm referring to. >> the last three years we've had growth. i agree the growth hasn't been strong enough. >> right. diana, do you think we could see a 75% tax rate here if, in fact, the president gets re-elected? would what's happening in france carry over here? is it the same ideology? >> no, because congress has to pass the tax rates over here. we have a congress. congress might let the rates go up to -- right now they're planning on letting them drop to 45%. when you add in state and local and some -- >> 39.6. what's five here or there. >> it's not 39.6. you have to add the medicare tax, the phase out of the personal exemption and standard deduction. that works out to around 44%. excuse me. >> okay, dpofolks.
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>> we're not going to get up to 75%. >> on that i agree. >> plus, our corporate tax rate is ten percentage points above that of our international competitors n competitors. that needs to be reduced. >> that was fun to watch. but i thought the last thing we needed was a fourth voice. thank you for joining us today. >> great to be with you. >> bill, i'm sorry about that. >> no. listen, it's a great topic right now. everybody's talking about it today. >> we're in the final stretch. 20 minutes before the closing bell sounds. we have a market holding on to the gains, up 78 points on the industrial average. a lot of people calling it the romney rally, bill. >> yes, they are. coming off the highs, though, right now. is the market on a march to a new all-time high? we're going to ask the ceo of t.d. asset management brian murdoch. he'll be with us in a moment. after the bell, would another disappointing jobs number tomorrow discredit all the action the fed has taken to fix the unemployment problem? the debate coming up on the "closing bell." stay with us.
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so stocks mounting a rally today after strong economic data this morning. we had encouraging remarks from the head of european central bank that that safety net is still in place, and of course the september jobs report released tomorrow morning could be a game changer for these markets, maria. >> joining us now with his take is brian murdoch, the chairman and ceo of t.d. asset management with nearly $200 billion in assets under management. brian, good to have you on the program. chblg >> thank you, maria. >> what are you seeing in terms of money flows? >> money is still continuing to move out of equities and fixed income. you're still seeing that shift. >> is fixed income a bubble right now? >> you know, we constantly get asked that question. it's not a bubble yet. i think it's a long-term problem. people are just derisking into the next crisis. >> the nature of my question is, are they there for the long haul, or could they turn on a
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dime if there's a sense that equities are going to take off? >> i think that's correct. it's really a holding place. it's more short term. there's an ocean of liquidity out there. people have been hiding out in cash for a long time. i think the fed policy is forcing people to move out on that risk curve to look for a better rate of return. how do you get a decent return over any period of time? >> so this whole idea that, you know, you're seeing a negative return is pushing money into equities. where, specifically, are you seeing much of the conviction, if you had to see asset classes or sectors? where's the real conviction? >> the conviction, the easiest part of it moved into equities. it started moving first to -- sorry, i lost you. it first moved into high yielding megacap stocks because that was the most comfortable place to be. you can see those valuations have really accelerated in the last year. those valuations are not as compelling as they were.
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it's going to move to the more cyclical sectors. in high def deividend, you're g to get things like telecom and utilities. you're going to see more cyclicality in technology and energy. there's probably -- when you see these pops, sometimes it's a function as if there was already expectation waiting for a catalyst. >> one of the surprising sectors this year have been the financials. they've done very well. do you think that continues or not? >> it could. i think there's huge head winds in financials with nominal yields so low. you have net interest income almost nonexistent. there's not a lot of source of top-line growth. there's huge operating leverage in those franchises, so the valuations were so compelling there was reason to buy. but going forward, it would be hard to see where that comes from. >> brian, what does the backdrop look to you? we're waiting for the jobs numbers tomorrow. do you see an immediate impact
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in terms of behavior, whether it's individual, institutional behavior, when we get this economic data? what's your take on the backdrop as we await for jobs in terms of the economic landscape right now? >> look, i think jobs and housing are very connected. you know, the good news is that the house numbers have stopped being bad, and people are calling that bad news. that's like the beatings have stopped so morale should improve. absent improving jobs, you're not going to see improving housing. housing probably, you know, a normalized housing market might add 100 points to gdp, so it could be a good thing. >> not as bad as it was, but nearly as good as it used to be. >> no, not there yet. >> brian, good to see you. thank you for joining us. >> thanks for having me on. >> final stretch here. 15 minutes until the closing bell sounds. we have a market holding on to the double-digit move. >> it may sound like a presidential ad, but this new commercial has nothing to do
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with the election. >> a great nation is something people build so they can have a place where they belong. >> facebook as chair. facebook's first ad ever. they equate themselves with chairs. i don't think this has anything to do with clint eastwood either, but we'll find out coming up. also coming up, my one on one interview with blackrock chairman and ceo larry fink. his firm managers more money than the fed, $3.6 trillion. where are they putting money now, and what about client base? don't miss that exclusive interview coming your way at 4:00 p.m. eastern. ♪
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welcome back. facebook reaching a milestone today. seema mody with the details. >> facebook hitting 1 billion users. on mark zuckerberg's facebook page, he wrote, helping a billion people connect is amazing, humbling, and by far the thing i'm most proud of.
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they've also launched their first commercial. let's take a look. >> chairs. chairs are made so people can sit down and take a break. anyone can sit on a chair. if the chair is large enough, they can sit down together. and tell jokes or make up stories or just listen. chairs are for people. and that is why chairs are like facebook. >> the use of a chair, maria. stock up about 0.4%. back to you. >> that is really funny. thank you, seema. watching facebook there trade in active volume. meanwhile, it's the end of an era at the new york stock exchange today. >> one of the most beloved personalities here on the new york stock exchange floor is retiring today. one james mcguire sr. he began his career in 1949. truman was in office. the dow, i looked it up, was at
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180 at that time. >> i was 18 years old. >> you were 18 when you started your career on wall street. different times back then. >> no, pretty much the same. >> nothing has changed? >> no, it's pretty much the same. people are people. i like to think i'm a people person. >> and there were no computers back then, were there? >> no, no. computers -- there's a place for them, but sometimes not as much as we think there should be. >> we should point out, jimmy for years was the specialist for berkshire hathaway. if you've ever traded shares of warren buffett's favorite stock, this is the guy you were buying or selling from. it's a question you've been asked so many times. a memorable day for you either on the floor here, and today doesn't count. >> a memorable day would be the day that president kennedy was assassina assassinated. that had to be beyond any other experience i've ever had.
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>> what an amazing run. >> jimmy, an old friend of yours maria, she couldn't be with us today, but she's wanting to chime in. he doesn't have an ear piece, so he can't hear you. go ahead. >> i just want to say what an amazing day and i want to thank jimmy for his leadership. i remember when i first got down there almost 20 years ago and he was among the people who were very supportive to me and showed such leadership then and throughout his career, so thank you, jimmy. congratulations on an amazing, amazing career you've had on wall street. >> her brief period here that she spent at new york stock exchange, as she's joking about, you have been one of the great friends she has enjoyed over the years here at big board. >> so nice to hear it, maria. likewise. i remember when tony -- >> that's right. anthony. >> he remembers the old days, maria. that's for sure. jimmy, we are so pleased you're
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here today. god bless. we'll get you upstairs. the mcguire boys are here with dad as well. we wish you well. >> thank you. >> take care, chief. >> thank you. you guys have been fantastic. >> when you get a thumbs up from jimmy, that's a big day. i love that. we're going to do the countdown coming up in a moment. >> and we're just moments away from an exclusive interview with blackrock chairman and ceo larry fink. find out what he thinks it will take to get investors back into this market and a lot more. stay with us. if you are one of the millions of men
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and we'll throw in up to $600 when you open an account. about four minutes left. a lot of movers today. let's get right to this. started with the euro this morning. mario draghi during his ecb news conference reminding the world that their safety net is in place, ready to go to bring rates down to help the banking situation over there. they were off to the races for the euro. what happens to the euro when our market goes higher? yes, the dow was higher on the open this morning. the jobless claims were a little better. partly the romney rally. after that it was sideways for
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the rest of the day. the best performance components, they were neck and neck today, was bank of america in the financials and alcoa in the materials sector. alcoa reports earnings next week. we'll watch that one very carefully. intel, the semiconductors weak all day in a strong market otherwise. that was the worst performing component of the dow today. then there was the 30-year treasury, which just took off, especially after the fed minutes came out at 2:00 eastern time today and the yield got even higher, up to 2.88% late in the session. energy, very much a feature today. the turkey/syria situation, and that pushed prices higher by almost 4% to $91.57. but a lot of it also had to do with gasoline futures up 5% today with that refinery in texas, the largest operating refinery in the country sustaining that big damage last night because of the fire. so there it is, up to $2.93. among the sectors, financials
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led the way, like bank of america. materials, like alcoa. then energy and consumer discretionary and the utilities. matt, a lot of moving parts and pieces today. how much credence -- do you see energy going much higher for here? would that boost stocks, do you think? >> it may boost stocks because they are such a large component of the s&p. i don't really see energy going anywhere. i think the middle east is probably starting to ratchet down here. the tensions over there are a lot less. this may be a snap back rally from the selloff yesterday. i'm not buying into energy here right now. >> financials. they were strong as well. bank of america, you know, that might have been a special situation. do you like that group as well? >> well, you know, if we're going to have another leader to take us another leg higher, it might be the financials. they've been a forgotten part of this rally. it's been technology, apple, all these other things. financials could lead us through to the end of the year. >> the jobs number coming out
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tomorrow. as the week as progressed, that number has gotten higher and higher. what are you expecting? >> i don't put any credence in the number at all anymore. the estimates are so far off. we expect them to go down as the election comes up. i don't put any credence in it. it's going to move the markets one way or the other. it's going to be a great opportunity for someone to trade on it. >> you'll just be nimble. >> why not? do what everyone else is doing. >> how about jimmy mcguire retiring today? >> special place in my heart. i started on the floor with jimmy. he got me my first jock. congratulations to jimmy and all he's done. >> thank you, matt. a huge and well-deserved ovation for the chief, as everybody's calling out here today. that's his nickname. jimmy mcguire retiring.